Stock Market Down: These are the 4 reasons due to which the stock market crashed:

On Friday, April 4, there was a massive sell-off in the Indian stock markets. At 11 am, the Sensex fell 820.15 points or 1.07% to a low of 75,475.21. Nifty 50 also fell 313.95 points or 1.35% to reach 22,936.15. Experts say that there are three main reasons for the fall.

(1) Fear of global trade war

After Trump's new tariff, China and Canada have also threatened to take retaliatory steps. This has made investors nervous. Experts believe that this uncertainty can last for a long time and can affect global growth. America has imposed 26% import duty on Indian goods and 10% on other countries. In response, Canada imposed a 25% tariff on American vehicles and China warned of taking immediate strict action.

(2) Weak global signals

In America, the S&P 500 index fell 4.9% and the Nasdaq 100 fell 5.5%, which is the biggest decline since 2020. Asian markets also fell - Japan's Nikkei was down 3%, South Korea's Kospi was down 2%. Shanghai and Hong Kong markets remained closed due to holiday.

(3) Sectoral pressure

Pharma stocks: Trump hinted at imposing tariffs on pharma products as well, which led to a fall in pharma stocks. IT stocks: Indian IT companies also fell due to weakness in US tech stocks. (Nifty IT index fell 2%, Coforge and Persistent Systems were the biggest losers.) Metal stocks: Metal stocks also saw a sell-off due to fears of rising trade barriers.

(4) Foreign investors (FII Selling)

Foreign investors (FII) are continuously selling shares. On Thursday, they sold shares worth ₹2,806 crore, while domestic institutional investors (DII) bought only ₹221 crore.